Pumpfun, a token launch platform on Solana, is rumored to be developing its own automated market maker (AMM), which could dramatically shift the trading landscape for memecoins and microcap tokens.
A New Milestone for Pumpfun
According to blockchain researcher trenchdiver101, Pumpfun's AMM is being tested on a private testnet. A new liquidity pool, amm.pump.fun, is reportedly under internal testing. On-chain transactions from February showed a test token called Snowfall (CRACK) added to a Pumpfun liquidity pool.
Risks and Benefits for Raydium
If Pumpfun integrates its AMM, it could reduce the need for new tokens to move to Raydium, affecting Raydium’s trading volume. The discussions have already led to a 30% drop in RAY's token price. Discussions about Pumpfun possibly charging higher fees could increase their revenue, forcing Raydium to adapt.
New Features and Potential Risks
Pumpfun's new AMM could introduce features like memecoin perpetuals, lending pools, and custom reward mechanisms. However, increased risks include potential smart contract exploits and heightened regulatory scrutiny.
Pumpfun aims to alter the trading landscape on Solana. Successful AMM implementation may impact other DEXs like Raydium and Orca, pushing them to adapt to new market conditions.
